Chapter 14 Arriving at the Final Price 139 p 355 Position E in Figure 14 3

Chapter 14 arriving at the final price 139 p 355

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Chapter 14 - Arriving at the Final Price139.(p. 355)Position "E" in Figure 14-3 above represents the price premium of which of the following? A. Crunch ‘n MunchB.Cracker JackC. Fiddle FaddleD. Private BrandsE. Seasonal, specialty, and regional brandsTo calculate a price premium, divide (dollar sales market share for a brand by unit volume market share for a brand) -1. For Crunch ‘n Munch the price premium is (32/32)-1=0 shown at position D. For Cracker Jack the price premium is (26/19)-1=.368 or 36.8% shown at position E. For Fiddle Faddle the price premium is (7/8) - 1 = .109 or 10.9% shown at position B. For Private Brands the price premium is (4/8) - 1 = .50 or 50% shown at position A. Finally for SSR brands the price premium is (31/33) - 1 = .061 or 6.1% shown at position C. Positions A, B, and C fall short of the benchmark established by Crunch ‘n Munch while position E shows a price premium relative to Crunch ‘n Munch.AACSB: 3LL: 3Learning Objective: 14-01 Describe how to establish the "approximate price level" using demand-oriented; cost-oriented; profit-oriented; and competition-oriented approaches140.(p. 355)As the brand manager for Cracker Jack, what information does Figure 14-3 above give you? A.You have a price premium relative to Crunch ‘n Munch.B. Crunch ‘n Munch has a price premium relative to Cracker Jack.C. Fiddle Faddle is priced higher than Crunch ‘n Munch.D. Private Brands sell more product than Cracker Jack.E. Seasonal, specialty, and regional brands have the lowest market share.To calculate a price premium, divide (dollar sales market share for a brand by unit volume market share for a brand) -1. For Crunch ‘n Munch the price premium is (32/32)-1=0 shown at position D. For Cracker Jack the price premium is (26/19)-1=.368 or 36.8% shown at position E.AACSB: 3LL: 3Learning Objective: 14-01 Describe how to establish the "approximate price level" using demand-oriented; cost-oriented; profit-oriented; and competition-oriented approaches14-167
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Chapter 14 - Arriving at the Final Price141.(p. 355)Setting one price for all buyers of a product or service is referred to as __________. A. customary pricingB.one-priceC. flexible-priceD. standard markupE. blanket priceKey term definition—one-price policy.AACSB: 3LL: 1Learning Objective: 14-02 Recognize the major factors considered in deriving a final list or quoted price from the approximate price level142.(p. 355)One-price policy refers to A. setting different prices for products and services depending on individual buyers and purchase situations.B. setting the price of a line of products at a number of different specific pricing points.C. setting of prices for all items in a product line to cover the total cost and produce a profit for the complete ling, not necessarily for each item.D. adding a fixed percentage to the cost of all items in a specific product class.
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